The program will provide those businesses with the resources they need to participate in up to $1 billion in contracting opportunities in the state.

“Small businesses are the engine of New York’s economy, but because of their size they have a harder time getting the capital they need to compete for state contracts,” New York Gov. Andrew Cuomo said in a statement. “To encourage their full participation in rebuilding our economy, the Bridge to Success program will help more small businesses access short-term loans so they can do business with New York’s agencies and authorities. Supporting MWBEs is one more way we’re expanding economic opportunity for all New Yorkers.”

Empire State Development is providing $2.73 million under the Bridge to Success program in loan loss reserves to five participating lenders who will make $20 million available short-term, working capital loans to qualifying firms.

Under the new plan, The New York Business Development Corp will provide statewide loan coverage and State Employees Federal Credit Union will provide loan coverage to parts of the Capital Region, Southern Tier, Central New York, Mohawk Valley, Finger Lakes and Western New York regions.

Tompkins Mahopac Bank will provide loan coverage to the Mid-Hudson region, TruFund Financial Services will provide loan coverage to the Mid-Hudson, Long Island and New York City regions; and Carver Federal Savings Bank will provide loan coverage to New York City.

“By partnering with high capacity lenders around the state, we are dramatically increasing the lending opportunities for MWBEs looking to work with the state,” Empire State Development CEO Ken Adams said. “Many banks are reluctant to provide credit to these firms given the short-term nature of their capital need and the size and experience of many of these companies, despite a good idea or track record. The governor’s Bridge to Success Program levels the playing field and opens the door for businesses that face challenges using traditional funding sources.”

Loans made under the program will typically be under $200,000 with terms of less than two years. Funds will provide qualified companies the bridge capital they need to hire staff, buy materials or purchase equipment, giving them a better chance to secure and perform on the up to $1 billion that is currently available in state contracting opportunities.

“This program will allow skilled MWBE contractors to effectively mobilize to the capacity levels required of contracting opportunities with the state of New York,” TruFund Financial Services President James Bason said. “These MWBE contractors will be empowered with the capital to grow their businesses and serve as employers and economic engines, enhancing the economic well-being of this region while contributing to overall, diversified economic growth of the state of New York.”

The Bridge to Success Program complements the New York State Surety Bond Assistance Program, which provides training and financial support to help minority and women-owned firms and other small businesses access the surety bonding necessary to bid and perform on New York State construction contracts. Over $40 million in surety bonding has been secured by small firms to date through the New York State Surety Bond Assistance Program, Cuomo said.

One comment

If the idea is to help small business, and Gov. Cuomo claims, then why is eligibility for the program determine by race and sex instead of size?

In any event, why do race, ethnicity, and sex need to be considered at all in deciding who gets awarded a contract? It’s good to make sure contracting programs are open to all, that bidding opportunities are widely publicized beforehand, and that no one gets discriminated against because of skin color, national origin, or sex. But that means no preferences because of skin color, etc. either–whether it’s labeled a “set-aside,” a “quota,” or a “goal,” since they all end up amounting to the same thing. Such discrimination is unfair and divisive; it breeds corruption; and it’s almost always illegal—indeed, unconstitutional—to boot (see 42 U.S.C. section 1981 and this model brief: http://www.pacificlegal.org/page.aspx?pid=1342 ). Those who insist on engaging in such discrimination deserve to be sued, and they will lose.